Condo conversion legislation making progress

It’s long been seen as the third rail of San Francisco land-use politics, but a deal may be close to allow more than 2,500 tenancy-in-common owners to find relief from high interest rates and ballooning mortgages.

Supervisor Mark Farrell said negotiations are progressing on his legislation to allow a one-time bypass of the annual condominium conversion lottery ini exchange for a $20,000 fee that could bring in millions for the city’s affordable housing fund. Past efforts to allow a bypass have failed because tenant advocates are concerned it could lead to more TICs and less rent-controlled housing in the city.

Despite the optimism, City Hall observers note that the legislation has been delayed four times in committee and whether the two sides can work something out remains in doubt.